SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934 (Amendment No. __)
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DWS RREEF Real Estate Fund, Inc.
(Name of Registrants as Specified in Its Charter)
SUSAN L. CICIORA TRUST
c/o Stephen C. Miller, Esq.
and Joel L. Terwilliger, Esq.
2344 Spruce Street, Suite A
Boulder, CO 80302
(303)442-2156
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SUSAN L. CICIORA TRUST
2344 Spruce Street, Suite A
Boulder, CO 80302
April 10, 2009
URGENT MESSAGE TO DWS RREEF REAL ESTATE FUND HOLDERS
Dear Fellow Stockholder:
On March 18, 2009, the DWS RREEF Real Estate Fund, Inc. (the "Fund"), formerly
known as the Scudder RREEF Real Estate Fund, announced its intention to
liquidate and dissolve the Fund. The Susan L. Ciciora Trust (the "Trust") is the
largest stockholder of the Fund and is OPPOSED to the Fund's proposal to
liquidate itself and dissolve. The Trust currently owns more than 16% of the
Fund's outstanding shares and will be voting AGAINST the liquidation. The Trust
and investment advisory companies working with the family of Stewart R. Horejsi
(the "Horejsi Entities") have years of experience in the closed-end fund
business - both investing in and managing - and believe that we can effect a
positive change in the Fund.
Soon you will receive proxy materials asking you to vote on the Fund's
liquidation proposal. We will be actively OPPOSING the Fund's liquidation and
will vote our shares AGAINST this bad idea.
We believe the Fund's miserable performance, especially as compared with its
peers, is not only due to bad market forces, but also due to exceptionally bad
management, exceptionally bad investment decisions and a complacent board of
directors.
If the liquidation proposal is defeated, we intend to present a slate of what we
deem highly qualified nominees to replace the current board of directors at the
next Annual Meeting.
Here are the reasons we OPPOSE liquidation:
1. We believe it is foolish to just throw away the Fund's valuable tax loss
carry-forwards. Liquidating the Fund means substantial hidden assets - the
Fund's realized and unrealized tax losses - are lost, instead of being put
to good use in offsetting future gains if the Fund stays in operation.
2. We believe that board members recommended by the Trust can do a better job
of overseeing the Fund and watching out for stockholders, and other
advisers can do a better job of managing the Fund's assets.
3. The liquidation plan calls for an income tax "set aside", meaning that
stockholders won't receive full payment for the liquidated value of their
shares until 2010, if at all. This is the result of yet another costly (but
entirely foreseeable and avoidable) mistake by management which
significantly and adversely impacts stockholders' value.
4. The frictional costs associated with liquidating, winding down and
dissolving the Fund are apt to be high and will be borne directly by
stockholders. We want to avoid these unnecessary costs.
5. By what we believe is their inept oversight of the Fund, the incumbent
board members have made it abundantly clear that their interests are not
aligned with stockholders. Thus, any recommendation by this board should be
scrutinized. Not one of the board members has a significant stake in the
Fund, so no board member took the financial hit that many stockholders
took.
6. Liquidation would require redeeming all of the Fund's leverage. Leverage is
an important asset of the Fund, especially today with auction market rates
at historic lows and the market close to the bottom - potentially a perfect
opportunity for leveraged investing. We want to preserve this important
investment tool.
7. Liquidation necessarily forces arbitrary selling at a very low point in the
market. Buying good deals in this low market seems much more appropriate.
Good buys benefit long-term stockholders for many years because there are
no taxable consequences on gains inside the Fund.
We have filed a preliminary proxy statement with the SEC in connection with the
Trust's solicitation of proxies to vote against the liquidation. The preliminary
proxy statement contains important information, including additional information
about the Trust and the Horejsi Entities and the views of the Trust. You should
read the preliminary proxy statement in its entirety. It can be obtained at no
charge on the SEC's web site at (http://www.sec.gov). In the near future we will
be sending you our final proxy statement which will further elaborate on why we
believe that defeating the liquidation proposal is the best way to maximize
value at the Fund.
Sincerely,
Stewart R. Horejsi, on behalf of The Susan L. Ciciora Trust